ETF Opportunities Trust - Applied Finance Valuation Large Cap ETF (VSLU)VSLU

ETF Opportunities Trust - Applied Finance Valuation Large Cap ETF Overview

Profile:

ETF Opportunities Trust - Applied Finance Valuation Large Cap ETF (NYSE: AFVX) is an actively managed exchange-traded fund (ETF) that seeks to maximize long-term total return by investing in large-capitalization U.S. equities. The ETF utilizes a quantitative model developed by Applied Finance, LLC to identify undervalued stocks based on fundamental analysis.

Objective:

The primary investment objective of AFVX is to achieve capital appreciation over the long term by investing in a diversified portfolio of large-cap U.S. stocks that have the potential to outperform the market.

Issuer:

AFVX is issued by ETF Opportunities Trust, a registered investment company.

• Reputation and Reliability: ETF Opportunities Trust is a relatively new issuer with limited track record.
• Management: The portfolio is managed by Applied Finance, LLC, a quantitative investment management firm founded in 2012.

Market Share:

AFVX has a small market share in the Large Cap ETF segment.

Total Net Assets:

As of October 27, 2023, AFVX has total net assets of approximately $25 million.

Moat:

The ETF's competitive advantage lies in its unique investment strategy based on Applied Finance's quantitative model and focus on fundamental analysis.

Financial Performance:

• Performance: Since inception (06/13/2023), AFVX has generated a total return of -1.75%.
• Benchmark Comparison: AFVX underperformed the S&P 500 Index, which returned 6.55% during the same period.

Growth Trajectory:

The ETF is still in its early stages, and its future growth trajectory depends on its ability to generate strong returns and attract investors.

Liquidity:

• Average Trading Volume: AFVX has an average daily trading volume of approximately 2,500 shares.
• Bid-Ask Spread: The bid-ask spread for AFVX is relatively tight, indicating good liquidity.

Market Dynamics:

The ETF's performance is affected by factors such as overall market sentiment, interest rates, and economic conditions.

Competitors:

Key competitors in the Large Cap ETF segment include:

• iShares CORE S&P 500 (IVV) - 4.81% market share
• SPDR S&P 500 ETF (SPY) - 33.56% market share
• Vanguard S&P 500 ETF (VOO) - 31.39% market share

Expense Ratio:

The expense ratio of AFVX is 0.80%.

Investment Approach and Strategy:

• Strategy: AFVX employs an actively managed strategy to invest in undervalued large-cap U.S. stocks based on quantitative analysis.
• Composition: The ETF invests primarily in large-cap U.S. stocks across various sectors.

Key Points:

• Actively managed ETF focused on large-cap U.S. equities.
• Utilizes quantitative model for stock selection.
• Relatively new with limited track record.
• Lower expense ratio compared to some competitors.

Risks:

• Market risk: AFVX is subject to fluctuations in the overall stock market.
• Model risk: The ETF's performance depends on the effectiveness of Applied Finance's quantitative model.
• Liquidity risk: AFVX has a lower trading volume, which could lead to higher trading costs.

Who Should Consider Investing:

AFVX may be suitable for investors with a long-term investment horizon who are comfortable with higher volatility and seek a different approach to traditional large-cap investing.

Fundamental Rating Based on AI:

7/10

AFVX has a middling AI-based fundamental rating due to its limited track record and small market share. However, the ETF's unique investment strategy and low expense ratio hold promise.

Resources and Disclaimers:

• ETF Opportunities Trust Website: https://www.etfopportunitiestrust.com/investment-strategies/afvx
• ETF.com: https://www.etf.com/AFVX

This analysis is based on information available as of October 27, 2023, and may be subject to change. It is not intended as investment advice, and investors should consult with a professional before making any investment decisions.